Hong Kong’s HKSFPA seeks lighter crypto reporting rules as the city plans new licensing for dealers, custodians, and OTC platforms.
The Hong Kong government may need to reconsider certain aspects of the OECD’s Crypto Asset Reporting Framework (CARF).
Recently, the Hong Kong Securities & Futures Professionals Association (HKSFPA) urged the city’s government to slow down the implementation of some elements of the framework.
Hong Kong and Plans for Global Crypto Tax-transparency Systems
These Hong Kong professionals believe that the OECD’s CARF and related Common Reporting Standard (CRS) amendments could be a burden.
They pointed to the possibility that it saddles local institutions with operational and liability risks. The HKSFPA claims that it supports the direction of the proposals.
These claims include mandatory registration of crypto service providers and expanded transactions reporting.
It is only asking for lighter requirements, particularly for those with no reporting activity.
For context, the CARF legislation sets a new standard for automatic cross-border tax information exchange for crypto asset users.
The Hong Kong government opened a public consultation on adopting it in December 2025.
It also talked about updating CRS, which is the OECD’s long-standing automatic information exchange regime for traditional financial accounts.
This was all part of the city’s plan to integrate cryptocurrencies into global tax-transparency systems and cross-border financial reporting.
Their implementation is designed to introduce automatic exchange of crypto-related tax data between Hong Kong and eligible partner jurisdictions from 2028.
Meanwhile, the full implementation should follow in the succeeding year.
The OECD confirmed that Hong Kong is one of 76 markets that have committed to implementing CARF. It is also one of the 27 jurisdictions undertaking first data exchanges by 2028.
Hong Kong Intensifies Crypto Regulatory Efforts
Hong Kong plans to expand its crypto sector in 2026, according to its detailed growth roadmap.
Officials plan to legislate new licensing regimes for Virtual Asset (VA) dealers and custodians. It is worth noting that this move could cement the city’s strategy to build a comprehensive digital asset framework.
The proposed rule will bring Over-the-Counter (OTC) desks, brokers, and asset custodians under the same regulatory framework as licensed trading platforms.
In December 2025, Hong Kong Insurance Authority announced its intent to allow insurance providers to invest capital in digital assets such as cryptocurrency and other risk ventures such as infrastructure.
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